money supply, banking & financial institutions section 4 Practice Questions Answers Test with Solutions & More Shortcuts

Question : 36

Increase in India's trade deficit may lead to which of the following:

a) Depreciation of rupee

b) Appreciation of rupee

c) Increase in money supply in the economy

d) Increase in GDP

Question : 37

Which of the following statements are true regarding the Foreign Currency Non-Resident (FCNR) Accounts:

1. Resident Indians and NRI's both can open
2. Only Foreign currency can be deposited
3. Rupee can be deposited
4. Can have both demand and time deposits

a) (ii) only

b) (ii) & (iv) only

c) (i) & (ii) only

d) (i), (ii) & (iv) only

Question : 38

Consider the following statement:

1. Ad hoc treasury bills are sold to the banks and public and are freely marketable.
2. Regular treasury bills are not sold to the banks and the general public and are not marketable.

a) 2 only

b) 1 only

c) 1 and 2

d) None of the Above

Question : 39

Which among the following is correct about the Vostro Account?

a) It is an account maintained by a foreign bank with a Bank in India in Indian Rupees.

b) It is an account maintained by a Indian Bank Branch with a Foreign Bank in Foreign Currency.

c) It is an account maintained by an Indian bank with a Bank in Foreign country in Foreign Currency.

d) It is an account maintained by a Foreign Bank Branch with a Indian Bank in Foreign Currency.

Question : 40 [UPSC (Pre) 1995]

Which one of the following is not an instrument of selective credit control in India?

a) Rationing of credit

b) Variable cost reserve ratios

c) Margin requirements

d) Regulation of consumer credit